Correlation Between Antero Midstream and Crestwood Equity
Can any of the company-specific risk be diversified away by investing in both Antero Midstream and Crestwood Equity at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Antero Midstream and Crestwood Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antero Midstream Partners and Crestwood Equity Partners, you can compare the effects of market volatilities on Antero Midstream and Crestwood Equity and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Antero Midstream with a short position of Crestwood Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Midstream and Crestwood Equity.
Diversification Opportunities for Antero Midstream and Crestwood Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antero and Crestwood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and Crestwood Equity Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crestwood Equity Partners and Antero Midstream is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Antero Midstream Partners are associated (or correlated) with Crestwood Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crestwood Equity Partners has no effect on the direction of Antero Midstream i.e., Antero Midstream and Crestwood Equity go up and down completely randomly.
Pair Corralation between Antero Midstream and Crestwood Equity
If you would invest 1,129 in Antero Midstream Partners on November 3, 2024 and sell it today you would earn a total of 475.00 from holding Antero Midstream Partners or generate 42.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Antero Midstream Partners vs. Crestwood Equity Partners
Performance |
| Timeline |
| Antero Midstream Partners |
| Crestwood Equity Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antero Midstream and Crestwood Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Midstream and Crestwood Equity
The main advantage of trading using opposite Antero Midstream and Crestwood Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Midstream position performs unexpectedly, Crestwood Equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Crestwood Equity will offset losses from the drop in Crestwood Equity's long position.| Antero Midstream vs. EnLink Midstream LLC | Antero Midstream vs. Western Midstream Partners | Antero Midstream vs. Plains GP Holdings | Antero Midstream vs. Plains All American |
| Crestwood Equity vs. Western Midstream Partners | Crestwood Equity vs. DT Midstream | Crestwood Equity vs. MPLX LP | Crestwood Equity vs. Enterprise Products Partners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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